Is the financial downturn over? In Shanghai, at least, the prospects are pleasing. Equities in the region advanced across the board with Shanghai among the past week’s best performers.The FTSE Asia-Pacific index rose 4.3% during the week to 223.74, its highest level since Lehman Brothers collapsed a year ago, leaving large numbers of unknowing investors destitute.
The Shanghai Composite added 2.2% and finished the week 4.5% up at 2,989.8, a three-week high.
Strong economic figures from China included industrial output growing at a faster pace, retail sales remaining strong and new lending accelerating for the month of August.
Chinese premier Wen Jiabao told the World Economic Forum in Dalian, north-east China, that the country would not scale back its economic stimulus at this stage.
And, perhaps as a result of this statement, China’s biggest lenders rallied 4.1% on average.
The Financial Times reported that Hong Kong’s Hang Seng index hit a one-year high yesterday at 21,161.4 after climbing 4.1% over the week. And going around the region it saw mainly positive signs everywhere except, possibly, in Japan.